Türkiye | Weekly Banking Tracker. March 29, 2024

In the week ending by March 29th, foreign currency adjusted weekly credit growth continued to accelerate from 0.7% to 1% due to commercial credits of public banks and consumer credit cards in the sector. Total credits’ 13-week annualized trend rose from 34.8% to 35.4%.

Key points

• Key points:
• TL commercial credits’ weekly growth accelerated in public banks with SME lending. Consumer credits’ weekly growth (excluding credit cards) decelerated in both public and private banks, led by the decline in general purpose loans of the sector. Consumer credit cards on the other hand accelerated strongly in both public and private banks.
• Weekly growth of FC credits was strong led by the non-SME lending of public banks. The accelerating growth rate seen in FC credits since Oct’23 pushed its trend rate to the highest level since 2013.
• TL deposits fell by TL 41.4bn, mainly caused by the fall in TL time deposits of households and corporates. After 3 weeks of strong upward movements, residents’ FC deposits fell by $2.2bn led by the decline in corporates USD deposits by $3bn compared to the increase in households’ USD deposits by almost $1bn.
• Credit interest rates continued to rise sharply for the 3rd week in a row (following the latest update in credit growth caps and the CBRT’s rate hike by 500 bps on March 21st). Commercial credit rates rose by another 427bps to 67.6% (a total of 1226 bps in 3 weeks). Consumer rates rose also by another 180bps to 78.7% (a total of 1704 bps).
• As released by the CBRT, TL deposit rates rose by 529bps to 57.3%.

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